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President Approves 2016 Locality Pay Increases

Yesterday the President transmitted to Congress his alternative plan for locality pay increases for civilian federal employees.

Over 100,000 federal employees will benefit from locality pay adjustments – the first such adjustments since 2010 – after January 1, 2016.

In justifying his alternative plan for pay increases, the President said “I view the adjustments that would otherwise take effect as inappropriate.”

The President was referring to the $26 billion that current law would have mandated in boosting locality pay an average of 28.74 percent, hence the alternative plan.

Feds, especially those living in large municipalities, such as the San Francisco area, the New York-Newark area, the Houston area, the Los Angeles area, the Hartford area, and the DC area will see the largest locality pay increases.

“Civilian Federal employees have already made significant sacrifices as a result of 3-year pay freeze that ended in January 2014. In January 2014 and again in January 2015, increases for civilian Federal employees were limited to a 1.0 percent overall pay increase, an amount lower than the private sector pay increases and statutory formula for adjustments to the base General Schedule for 2014 and 2015,” the President wrote in his message to Congress. “However, as the country's economic recovery continues, we must maintain efforts to keep our Nation on a sustainable fiscal course. This is an effort that continues to require tough choices.”

A table showing the locality payment by locality pay area is available on OPM's website: Alternative Plan for 2016 Locality-Based Comparability Payments.

Posted in Featured News

Tags: pay raise, federal pay

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